Crypto Price Movement Tool Planned By Nasdaq

Exchange operator Nasdaq is reportedly preparing to launch a new tool for predicting the price movements of cryptocurrencies on its Analytics Hub.

In May 2017, Nasdaq launched its Analytics Hub to provide institutional investors, fund managers and traders with a library of vetted, back-tested and normalized alternative and financial data to help inform investment decisions. Currently, the hub is focusing solely on traditional assets, but according to a source familiar with the company’s plans, the hub will add a tool to enable prediction of crypto price movements.

The source told Coindesk that the hub is planning to provide sentiment on 500 crypto assets, and its analysis will include looking at fund flows via wallets, data from exchanges and social media. The source added that the new crypto functionality is currently in the beta testing phase and expected to be rolled out in November.

“There’s the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit,” the source said.

Nasdaq, the second-largest exchange in the world by market capitalization, has been exploring the potential of cryptocurrencies for a while now. In January of this year, Nasdaq CEO Adena Friedman confirmed that the exchange was looking into offering bitcoin futures. In an interview with CNBC’s Squawk Box in April, she said that Nasdaq would consider becoming a crypto exchange over time.